Bond funds face multiple pressures: massive redemptions surge, new products delay fundraising, and fund managers resign with "clearance-style" exits

The Daily Economic News Reporter: Ren Fei The Daily Economic News Editor: Xiao Ruidong

On April 8, several public mutual funds such as Chuangjin Hexin, Canda, and Xinyuan announced large redemptions of some of their bond funds on April 7, and increased related share precision to cope.

The “Daily Economic News” reporter noticed that compared to previous reports, the number of funds announcing massive redemptions on April 8 has significantly increased, reflecting the current pressure on bond fund holdings.

In fact, the bond market remains sluggish, and there are still many bond fund managers “liquidating” their positions. Meanwhile, since 2026, the issuance momentum of public mutual funds has been relatively good, but many products have extended their fundraising or open periods, most of which are pure bond products.

The number of bond funds experiencing massive redemptions surges, with fund managers “liquidating” their positions

On April 8, the announcement of net value precision adjustments for public mutual funds increased noticeably, most of which are bond funds, which is uncommon in the recent market. Although the bond market remains weak, large single-day redemptions of bond funds are now rare.

Wind statistics show that seven public mutual funds, including Puyin Ansheng, Xinyuan, Guoshou Anbao, Chuangjin Hexin, and Canda Fund, announced large redemptions of some of their products on the morning of April 8. All involved funds are bond-type products, and most experienced large redemptions on April 7.

Specifically, products such as Puyin Ansheng Pufeng Pure Bond A, Xinyuan Hefu Pure Bond D, and Canda Fengyu Pure Bond C all experienced large redemptions during this period. Notably, among the bond funds experiencing large redemptions, the majority are pure bond funds. The fund companies also clarified that after the large redemptions, risk has been managed through precision adjustment methods.

In fact, the bond market has not shown a turning point entering 2026. On the contrary, negative factors in the bond market have increased recently. Especially after the escalation of overseas geopolitical conflicts, rising oil prices have pushed up inflation pressures, deeply affecting the recovery of the bond market. Although these negative effects are waning, the performance of the investment community shows that such low-risk assets are increasingly avoided by funds.

Previously, an industry insider mentioned in an interview with the reporter that, with the continuation of the low-interest-rate era, the expected returns of traditional bond funds are continuously declining, and secondary bond funds and FOF products under the “Fixed Income+” strategy are becoming new investment focuses.

According to Tianxiang Investment Advisory data for Q4 2025, the subscription ratio of FOF funds reached 2.87% in that quarter, while bond funds were only 0.91%, indicating that the net subscription share of FOF products was higher than that of bond funds in total subscriptions, a situation not seen for a long time.

Corresponding to industry changes, some bond fund managers have also adjusted. On April 8, another bond fund manager “liquidated” his position—Bosera Fund announced that fund manager Yu Bin had resigned. Wind statistics show he managed 36 funds, most of which are fixed income products; during his tenure at Bosera, all managed products were bond funds. Based on the annualized returns during his management period, many products had annualized returns below 2%.

Public issuance side frequently extends fundraising periods, most bond funds are pure bond products

Since 2026, the public mutual fund industry has maintained a good issuance momentum, with the average subscription days decreasing on a monthly basis. However, there is still some pressure, as many bond products have extended their fundraising periods.

Public information shows that April 8 is the last fundraising deadline for Industrial Bank’s 6-month pure bond fund, which was originally scheduled to end its open period on March 25 but was extended to April 8; similarly, Industrial Bank’s stable income one-year product extended its open period from March 13 to March 18.

In addition, Pengyang Chunli’s periodic open fund, Wanjia Anhong Pure Bond One Year, and Industrial Bank’s Tainyi 6-month fund also extended their open periods. Some products have extended their open periods multiple times, such as Wanjia Anhong Pure Bond One Year, which first announced an extension to March 13 on March 5, then again extended to March 23 on March 12.

Of course, based on the year-to-date yield, as of the end of Q1, CITIC Securities research reports show that pure bond funds remain stable, with most outperforming amortized cost open funds. Credit bond funds perform better than interest rate bond funds, and medium- to long-term bond funds outperform medium- and short-term bond funds.

It is worth noting that the drawdown of “Fixed Income+” funds across categories increases with rising equity exposure, with bond-leaning hybrid funds experiencing larger declines than secondary bond funds. From the beginning of the year, most categories of “Fixed Income+” funds still achieve positive returns, while convertible bond funds have turned negative.

Industry experts believe that long-term, equity-oriented “Fixed Income+” products still have a relative advantage. According to 2025 fund annual reports, the proportion of institutional investors holding secondary bond funds increased from 68% in 2024 to 71% in 2025, indicating that institutional demand is driving the scale of “Fixed Income+” upward.

Regarding the recent and future outlook of the bond market, Bosera Fund analysis points out that at the end of March, cross-season liquidity was stable and ample, with DR001 dropping to a new low of 1.23%. Under the background of still weak internal fundamentals and ongoing external geopolitical risks, monetary policy is expected to remain accommodative, making short- to medium-duration assets attractive. Long-term interest rates are still in a game between weakening risk appetite, rising inflation, and fundamental recovery, with short-term expectations for continued volatility.

Daily Economic News